Gold hits record high as US-China ties worsen, Asia stocks helped by technology

News Network
July 27, 2020

Tokyo, Jul 27: Gold hit an all-time high on Monday as tit-for-tat consulate closures in China and the United States rattled investors, boosting the allure of safe-haven assets, although sentiment was mixed with tech gains supporting some Asian stocks.

MSCI's ex-Japan Asia-Pacific index rose 1.3 percent as Taiwan's TSMC, Asia's third-largest company by market capitalisation, rose almost 10 percent.

The chipmaker's gains boosted other tech stocks in the region and came after rival Intel signalled it may give up manufacturing its own components due to delays in new 7-nanometer chip technology.

Also soothing sentiment, Chinese shares eked out gains after big falls late last week, with CSI300 index rising 0.5 percent.

S&P500 futures were last up 0.4 percent in choppy trade while Japan's Nikkei fell 0.5 percent, resuming trade after a long weekend and catching up with falls in global shares late last week.

Global shares had lost steam last week after Washington ordered China's consulate in Houston to close, prompting Beijing to react in kind by closing the US consulate in Chengdu.

US Secretary of State Mike Pompeo took fresh aim at China last week, saying Washington and its allies must use "more creative and assertive ways" to press the Chinese Communist Party to change its ways.

"US President (Donald) Trump used to say China's President Xi Jinping is a great leader. But now Pompeo's wording is becoming so aggressive that markets are starting to worry about further escalation," said Norihiro Fujito, chief investment strategist at Mitsubishi Securities.

Gold rose 1.0 percent to a record high of $1,920.9 per ounce, surpassing a peak touched in September 2011, as Sino-US tensions boosted the allure of safe-haven assets, especially those not tied to any specific country.

The yellow metal is also helped by aggressive monetary easing adopted by many central banks around the world since the pandemic plunged the global economy into a recession.

Some investors fret such an unprecedented level of money-printing could eventually lead to inflation.

MORE STIMULUS

Hopes of a quick US economic recovery are fading as coronavirus infections showed few signs of slowing.

That means the economy could capitulate without fresh support from the government, with some of earlier steps such as enhanced jobless benefits due to expire this month.

Investors hope US Congress will agree on a deal before its summer recess but there are some sticking points including the size of the stimulus and enhanced unemployment benefits.

US Treasury Secretary Steve Mnuchin said the package will contain extended unemployment benefits with 70 percent "wage replacement".

Democrats, who control the House of Representatives, want enhanced benefits of $600 per week to be extended and look to much bigger stimulus compared with the Republicans' $1 trillion plan.

Investors are looking to corporate earnings from around the world for hints on the pace of recovery in the global economy.

"It looks like rising coronavirus cases are starting to slow down recovery in many countries," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

Concerns about the US economic outlook started to weigh on the dollar, reversing its inverse correlation with the economic well-being over the past few months.

The dollar index dropped 0.3 percent to its lowest level in nearly two years.

The euro gained 0.3 percent to $1.1693, hitting a 22-month high of $1.16590 as sentiment on the common currency improved after European leaders reached a deal on a recovery fund in a major step towards more fiscal co-operation.

Against the yen, the dollar slipped 0.5 percent to 105.605 yen, a four-month low while the British pound hit a 4 1/2-month high of $1.2832.

Oil prices dipped on worries about the worsening Sino-US relations.

Brent futures fell 0.46 percent to $43.14 per barrel while US crude futures lost 0.44 percent to $41.11.

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News Network
March 29,2020

Washington, Mar 29: The number of known coronavirus US cases soared well past 115,000, with more than 1,900 dead, as President Donald Trump said on Saturday he was considering imposing a quarantine on the hard hit New York region.

American healthcare workers in the trenches of the pandemic are appealing for more protective gear and equipment to treat a surge in patients that is already pushing hospitals to their limits in virus hot spots such as New York City, New Orleans and Detroit.

Trump told reporters he could order a quarantine on three states, New York, New Jersey and Connecticut, which between them have recorded at least 64,000 infections and 895 deaths.

He also appeared to soften his previous comments calling for the US economy to be swiftly reopened. Asked whether he thought the United States would restart by Easter Sunday, April 12, Trump replied, "We'll see, what happens."

New York Governor Andrew Cuomo said he had no details on any possible quarantine order for his state, telling a briefing: "I don't even know what that means. I don't know how that would be legally enforceable, and from a medical point of view I don't know what you would be accomplishing."

He said New York was postponing its presidential primary election to June 23, from April 28.

As the crisis deepened, nurses at Jacobi Medical Center in New York's borough of the Bronx protested outside the hospital on Saturday, saying supervisors asked them to reuse personal protective equipment, including masks. Some held signs with slogans including "Protect our lives so we can save yours."

"The masks are supposed to be one-time use," one nurse said, according to videos posted online. "Now, all of a sudden the CDC (Centers for Disease Control and Prevention) is saying that it's fine for us to reuse them. These choices are being made not based on science. They're being made based on need."

One resident at New York Presbyterian Hospital said they were issued with just one mask.

"This is your mask forever. You can bring it home with you. Here's how you can clean your mask," said the resident, who asked not to be named because he was not authorized to speak to the media. "It's not the people who are making these decisions that go into the patients' rooms."

Doctors are also especially concerned about a shortage of ventilators, machines that help patients breathe and are widely needed for those suffering from COVID-19, the pneumonia-like respiratory ailment caused by the highly contagious novel coronavirus.

Hospitals have also sounded the alarm about scarcities of drugs, oxygen tanks and trained staff.

By Saturday afternoon, the US number of cases stood at 115,842 with at least 1,929 deaths, according to a Reuters tally. The United States has had the most recorded cases of any country since its count of infections eclipsed those of China and Italy on Thursday.

BLACK MARKET
As shortages of key medical supplies abounded, desperate physicians and nurses were forced to take matters into their own hands.

New York-area doctors say they have had to recycle some protective gear, or even resort to bootleg suppliers.

Dr. Alexander Salerno of Salerno Medical Associates in northern New Jersey described going through a "broker" to pay $17,000 for masks and other protective equipment that should have cost about $2,500, and picking them up at an abandoned warehouse.

"You don't get any names. You get just phone numbers to text," Salerno said. "And so you agree to a term. You wire the money to a bank account. They give you a time and an address to come to."

Nurses at Mount Sinai Hospital in New York said they were locking away or hiding N95 respirator masks, surgical masks and other supplies that are prone to pilfering if left unattended.

"Masks disappear," nurse Diana Torres said. "We hide it all in drawers in front of the nurses' station."

One nurse at Westchester Medical Center, in the suburbs of the city, said colleagues have begun absconding with scarce supplies without asking, prompting better-stocked teams to lock masks, gloves and gowns in drawers and closets.

An emergency room doctor in Michigan, an emerging epicenter of the pandemic, said he was wearing one paper face mask for an entire shift due to a shortage and that hospitals in the Detroit area would soon run out of ventilators.

"We have hospital systems here in the Detroit area in Michigan who are getting to the end of their supply of ventilators and have to start telling families that they can't save their loved ones because they don't have enough equipment," the physician, Dr. Rob Davidson, said in a video posted on Twitter.

Sophia Thomas, a nurse practitioner at DePaul Community Health Center in New Orleans, where Mardi Gras celebrations late last month fueled an outbreak in Louisiana's largest city, said the numbers of coronavirus patients "have been staggering."

In the nation's second-largest city, Los Angeles Mayor Eric Garcetti said spiking cases were putting Southern California on track to match New York City's infection figures in the next week.

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News Network
June 13,2020

New Delhi, Jun 13: India's COVID-19 tally on Saturday witnessed its highest-ever spike of 11,458 cases, according to the Union Ministry of Health and Family Welfare (MoHFW).

A total of 386 deaths have been reported due to the infection during the last 24 hours.

The total number of coronavirus cases in the country now stands at 3,08,993 including 1,45,779 active cases 1,54,330 cured/discharged/migrated and 8,884 deaths.

COVID-19 cases in Maharashtra continue to soar with the number reaching 101141. Tamil Nadu's coronavirus count stands at 40,698 while cases in Delhi reached 36,824.

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News Network
May 22,2020

Washington, May 22: The deadly coronavirus came from China and the US is not going to take it lightly, American President Donald Trump said on Thursday.

"It came from China. We are not happy about it. We just signed a trade deal, the ink wasn't dry and all of the sudden this floated in. We are not going to take it lightly,” Trump said participating in a Listening Session with African-American Leaders in Michigan.

Trump in the last several weeks has been very critical of China's inability to control the spread of the novel coronavirus within its territory. By Thursday more than 94,000 Americans have died due to the coronavirus and over 1.6 million have tested positive.

He has so far not given any indication of the steps that he is contemplating taking against China.

Meanwhile, pressure is building on his administration, mainly from the Republican lawmakers on this.

On Thursday, Senators Ted Cruz and Rick Scott, along Mike Braun, Marsha Blackburn, Joni Ernst, Martha McSally and Tom Cotton, introduced the COVID-19 Vaccine Protection Act to prevent the Chinese Communist Party from stealing or sabotaging American COVID-19 vaccine research.

The bill requires a thorough national security evaluation and clearance by the Department of Homeland Security, the Department of State, and the Federal Bureau of Investigation of all Chinese student visa holders taking part in activities related to COVID-19 vaccine research.

"The same Chinese Communist Party that covered up the coronavirus outbreak also routinely engages in state sponsored theft of intellectual property," Cruz said. "We cannot allow China to steal or interfere with American research and development of a vaccine,” he added.

"Communist China is responsible for the coronavirus pandemic, and their lies and misinformation cost American lives," Scott said.

"We cannot let Communist China off the hook for this, and we absolutely cannot allow Communist China to steal or sabotage any American research efforts related to the Coronavirus vaccine. The COVID-19 Vaccine Protection Act protects American efforts to create a vaccine as we work to end this pandemic," he added.

The COVID-19 Vaccine Protection Act, among others requires an enhanced vetting of nationals of the Chinese nationals in the US as nonimmigrants under F, J, or M student visas to determine if any student visa holders are a national security threat.

Once the review is complete, authorizes Department of Homeland Secretary, in consultation with other agencies, to continuously monitor all nonimmigrant student visa holders (F, M, J) who are Chinese nationals while in the US and are engaged in, or have access to, the research of any potential COVID-19 vaccine or COVID-19 related material.

Republican Whip and Ranking Member of the Select Subcommittee on the Coronavirus Crisis Steve Scalise alleged that China lied to the world on coronavirus.

"During a critical period in December and January, China withheld evidence of the virus: evidence that confirmed human to human transmission of the virus, evidence of the extent of the spread. China refused entry of American and other medical experts from around the world for weeks,” he said.

“And during this time, China hoarded medical supplies like masks, gowns, and other life-saving PPE. Chinese exports of surgical masks, gowns, and gloves were stifled by the Chinese Communist Party during this period. China knew the danger posed by the virus and while they hid the truth, they used the time to stock up on vital medical supplies,” Scalise said.

“While Chinese authorities limited domestic flights from Wuhan to other Chinese cities like Beijing and Shanghai, China's government urged international carriers to maintain their flight schedules — seeding the virus throughout the rest of the world,” he alleged.

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